The Social Security System (SSS) has approved more than P1.923 billion loans under its enhanced Pension Loan Program (PLP) in the first eight months of the year, benefitting 43,424 retirement pensioners, the pension fund said in a statement yesterday.
Aurora Ignacio, SSS president and chief executive officer, said this year’s approved pension loans declined by 17 percent versus the P2.311 billion approved for the same period, last year.
“We can attribute the decrease in approved pension loans to the lower number of pensioner-borrowers this year. SSS records showed that there were 43,424 pensioner-borrowers from January to August 2021, which is 15 percent lower than the 51,121 borrowers in 2020,” Ignacio said.
“It is partly due to the restricted mobility for senior citizens brought by the quarantine protocols. Also, some of them are still repaying their pension loans granted to them last year,” she added.
SSS Bacolod branch has the highest amount of approved pension loans at P89.36 million for 2,649 pensioners. SSS Cebu placed second with P44.87 million approved pension loans for 962 borrowers, while the Davao branch came in third with P38.26 million approved pension loans for 930 borrowers.
Other branches included in the top five branches with the highest approved pension loans are SSS Bacoor with P37.38 million for 722 borrowers and SSS Antipolo with P33.45 million for 651 borrowers.
Launched in September 2018, the PLP aims to assist SSS retirement pensioners in their financial needs and prevent them from becoming victims of private loan sharks with higher interest rates and taking their ATM cards as collateral.
Ignacio further encourages the retirement pensioners to avail the PLP since it is designed to help them in their short-term financial needs.
“We recognize that they need financial assistance to help augment their daily expenses, especially that we are in a pandemic. PLP can help cover expenses for their medicines, vitamins, and other healthcare needs,” Ignacio said.
Under the program, qualified retirement pensioners can avail of a loan equivalent to three, six, nine or 12 times their basic monthly pension (BMP) plus the P1,000-additional benefit. However, the loanable amount should not exceed the maximum loan limit of P200,000. In addition, the net take-home pension of the pensioner-borrower should at least be 47.25 percent.
